MASHINIi

Prudential Financial Inc.

PRU.US | Life insurance

Prudential Financial, Inc. is a diversified financial services company. It operates through various segments, including PGIM (global investment management business), Retirement Strategies (retirement income and investment products), Group Insurance (workplace benefits), Individual Annuities (variabl...Show More

Ethical Profile

Mixed.

Prudential Financial has faced significant ethical challenges, including $926 million in penalties since 2000. This includes a $600 million fine for deceptive market timing and a $330 million settlement for allegedly defrauding investors of $8 billion. A February 2024 data breach reportedly impacted over 2.5 million individuals. However, Prudential is recognized as one of the World's Most Ethical Companies for 11 consecutive years. It committed $180 million to opportunity youth, invested $15 million in affordable lending for minority-owned businesses, and aims for net-zero emissions by 2050. Its Newark campus uses 100% renewable electricity, and $39.1 billion is held in sustainable investments.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect20
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business-20
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-10
-100100
Respect for Cultures & Communities10
-100100
Safe & Smart Tech-20
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

0

Prudential offers comprehensive mental health programs, including voluntary workplace insurance that covers screenings for substance use and severe mental illnesses

1
. The company provides behavioral health tools through a digital hub
2
and offers mental wellness support to the Black community via the Square 1: The Liife Experience Initiative
3
. Prudential's core financial products do not have direct health impacts, and there is no evidence of revenue from harmful products, direct safety implications, or health externalities. The company does not engage in pharmaceutical patenting, food production, clinical trials, or addiction-prone products. There is no specific data on the percentage of the product portfolio providing health benefits, health-related expenditure, or the reach of health equity programs to vulnerable populations, leading to the omission of these KPIs.

Fair Money & Economic Opportunity

0

Prudential has made significant commitments and investments in initiatives aimed at economic opportunity and financial inclusion. The company fulfilled a $180 million global commitment to support over 1 million opportunity youth with education and training, including financial education, to enhance their economic mobility.

1
It committed $3.3 million to increase homeownership for low-income families
2
and launched a 'Blueprints to Black Wealth' initiative to address the racial wealth gap.
3
Prudential invested $1.7 million in the Entrepreneurs of Color Fund in Newark
4
and $15 million in CDC Small Business Finance to expand affordable lending to minority-owned businesses.
5
Further, it committed $10 million to the Financial Solutions Lab to improve financial health for low-income households
6
and provided $500,000 to seed investment accounts for 500 HBCU students.
7
Since 2017, its PruBono program has offered free consulting to small businesses in Newark.
8

Fair Pay & Worker Respect

20

In 2024, Prudential Financial Inc. demonstrated strong pay equity in its U.S. operations, with women receiving 99.1% of total compensation compared to men, and Black and Hispanic employees receiving 99.9% of total compensation compared to non-Hispanic white employees.

1
The company also reported a low U.S. voluntary turnover rate of 4.7% in 2024.
2
Its global employee engagement score was 73% favorable in 2024.
3
The CEO to median employee pay ratio was 293 to 1 in 2024.
4

Fair Trade & Ethical Sourcing

0

Prudential Financial is a diversified financial services company. As such, it does not procure or trade physical commodities, rendering KPIs related to fair-trade certifications, supply chain traceability for physical goods, and high-risk material sourcing not applicable. The company has established a Supplier Code of Conduct emphasizing human rights and business integrity

1
, and its impact investment portfolio supports enterprises prioritizing fair labor practices and transparency
2
. However, the provided articles do not offer specific, quantifiable data for other KPIs, such as the percentage of suppliers with enforceable ethical clauses, the frequency of supplier audits, the number of substantiated forced or child labor incidents, the median time to remediate violations, or the percentage of procurement budget allocated to diverse suppliers. Therefore, these KPIs cannot be scored based on the available evidence.

Honest & Fair Business

-20

Prudential Financial disclosed one accounting restatement in January 2025, impacting operating earnings for Q3 YTD 2023 and YTD 2024, which were overstated by $24 million and $115 million respectively.

1
The company has a comprehensive whistleblower policy, communicated to all employees through an ethics course and annual Code of Conduct affirmation.
2
It provides a 24/7 Global Business Ethics & Integrity Hotline and web portal, allows anonymous reporting, and strictly prohibits retaliation, though programme effectiveness metrics are not publicly measured.
3
Prudential also maintains an anti-bribery and corruption (ABC) compliance risk management program, which includes periodic risk assessments and risk-based audits by Internal Audit, and complies with major anti-corruption laws such as the US FCPA and UK Bribery Act.
4

Kind to Animals

0

Prudential Financial Inc.'s core business in life and health insurance is service-oriented and does not directly impact animal welfare, animal products, or animal testing. Therefore, all KPIs related to these activities are not applicable. While its investment arm, PGIM, integrates ESG and responsible investing, specific details regarding animal welfare considerations in its investments or any measurable impact are not disclosed.

1

No War, No Weapons

0

Prudential Financial Inc. is a diversified financial services company. Its activities include managing Veterans' Group Life Insurance for over 454,000 veterans

1
, partnering to provide financial education and resources to military spouses
2
, and investing over $25 million since 2019 in grants and sponsorships for veteran and military family financial wellness
3
. Prudential also assumed $1.8 billion in pension obligations from Lockheed Martin
4
. The articles explicitly state that these initiatives are "without engaging in defense-related activities" and involve "managing pension liabilities, not direct military operations or arms production." Therefore, there is no evidence of revenue derived from arms or defense contracts in its core business. No specific, quantifiable evidence was found for any other KPIs.

Planet-Friendly Business

-10

Prudential Financial's total Scope 1, 2, and 3 greenhouse gas emissions in 2024 were 289,149 tCO2e.

1
The company aims to achieve carbon neutrality across its Scope 1 and 2 market-based emissions by the end of 2030.
2
Additionally, it targets net-zero emissions for core properties by 2050, with interim goals of a 55% reduction by 2030 and 97% reduction by 2040 from a 2017 baseline.
3
58% of Prudential's global annual energy use is covered by renewable energy contracts.
4
The company launched a $2 million Climate and Health Resilience Fund
5
and supported a program to protect 50,000 Indian women against extreme heat,
6
aligning with its aim for a just and inclusive transition.
7

Respect for Cultures & Communities

10

Prudential launched a pilot campaign in 2024 to support Hispanic Americans in retirement planning, which includes Spanish-language advertising and market certification training for financial professionals to provide culturally competent advice.

1
There are no reported cultural appropriation incidents. FPIC processes are not applicable to the company's operations. The company continued its Community Grants Program in 2024, involving Newark residents in the selection of projects supporting community health, arts, education, and neighborhood development.
2
In 2023, this program provided $280,000 in grants to 53 community-based projects in Newark, addressing local issues such as violence prevention and support for single-parent households, in partnership with the Community Foundation of New Jersey and local organizations.
3
Additionally, in 2021, Prudential committed $200 million through its DEI Portfolio to investments with substantial ownership or management by women and minorities.
4

Safe & Smart Tech

-20

In February 2024, the company experienced a data breach impacting over 2.5 million individuals, with compromised names, addresses, and driver's license numbers

1
. This incident was attributed to the ALPHV ransomware group
2
. In response, the company implemented enhanced security measures, including improved access controls and stronger authentication protocols, and offered affected individuals two years of complimentary credit monitoring services
3
. Additionally, Prudential has established an AI Governance Working Group, comprising senior leaders from various functions, to oversee the responsible and ethical use of AI technologies and ensure alignment with its commitment to trust
4
.

Zero Waste & Sustainable Products

0

The provided articles detail Prudential Financial's efforts to reduce emissions, including a 69% reduction from a 2017 baseline

1
and a commitment to net-zero emissions by 2050.
2
They also mention sourcing 100% renewable electricity for its Newark campus
3
and restricting investments in companies with significant thermal coal revenues.
4
However, there is no specific information or data points related to waste management, product recyclability, packaging sustainability, or any other KPIs under the 'Zero Waste & Sustainable Products' ethical value.

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.